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When are company documents signed

kings22 (Shareholder) (166 Points)

16 November 2020

The Private Limited company completed its board meeting wherein draft board report, financial statements, audited statements, notice for AGM and notes to accounts were approved.

Now the AGM is scheduled in about 3 weeks. Do the financial statements need to be signed before sending to shareholders for AGM meeting or it is fine just to send them unsigned for now.

When are the financial statements signed by Directors ? When does Auditor sign the auditor statement?

Appreciate any help to understand this better.

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4 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 16 November 2020

There's are three parts or senerio
part 1
conduct of AGM with normal notice period of 21 days that means notice should be given on or before 6th sep and board of meeting should be conducted on or before such date for approval of audit financial statement so your audit report should be finished or ready for singing before 6th sep
second part
conduct of AGM at shot notice that is when a AGM is conducted in less than 21 days by minimum of 95 consents then notice for agm should be given on or before 29th sep and date of approval for audit reports should be conducted on or before it hence your audit report should be finished for signing is before 29th sep

part 3 for extended of AGM
when you unable to finalize your statement on or before say 6th sep or on or before 29th sep then
you require to apply for extention with ROC in form GNL-1 on or before 6th sep
after statisfication of the reason the registrar will give extension of 3month and the books of account should be audited atleast 25 days before the conduct of AGM date given by registrar

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kings22 (Shareholder) (166 Points)
Replied 17 November 2020

Than you for your mail. In our situation it is Part 1 . We gave 21 days notice for AGM . The question I am asking is that when we send notice for AGM , do the financial documents and Audit report need to be signed or it is fine to share the unsigned documents with Shareholders letting them know these are approved by the Board. Please let me know your thoughts.

Regards

ayusmita (Tax consultant) (5885 Points)
Replied 17 November 2020

They should be signed

CS M Pota (Company Secreatary) (3186 Points)
Replied 17 November 2020

The Financial statement are approved at the Board meeting and signed before the sending to the members of the Company.The auditor may singe the audited balance sheet on the same day of Board meeting because the Board will approved the audited financial Report. After approval of the Board the audited financial statement is sent to the auditors for their Report thereon.